There is a willingness by many people to pay more for property located close to parks and open space than for property that does not offer this amenity. This process of ‘capitalisation’ of park land into increased property values is termed the ‘proximate principle’. The paper traces the central role of the proximate principle in persuading local governments to invest resources into England’s early urban parks. The first purpose-built urban parks in England were conceived as private enclaves for the wealthy. Their primary purpose was to create premium values for properties around them and, hence, enhance the profitability of residential dwellings to the developer. The earliest forms of these private enclaves were ‘squares’. The evolution of the principle to larger park areas occurred in 1811 with John Nash and the commitment to develop Regent’s Park in London and its adjacent Nash terraces that were targeted at the wealthy. In 1841, Richard Yates developed Prince’s Park in Liverpool, using the proximate principle which had resulted in the highly profitable real estate development at Regent’s Park. He hired Joseph Paxton to design it. Its success resulted in a decision by the commissioners of the nearby new city of Birkenhead to hire Paxton and incorporate the financing principle in the construction of Birkenhead Park, which was the world’s first municipal park to be funded with local taxpayers’ resources. Birkenhead Park was the landmark project at which the proximate principle was transitioned from the private to the public sector.